February 02, 2017 

By Stacy M. Brown 

NNPA Newswire Contributor 

Every American needs a RushCard — or Green Dot.

 

That’s the mantra of RushCard founder and business mogul Russell Simmons, who together with Green Dot Corporation President Steven Streit, explained the intricacies of their new partnership in an interview with the NNPA Newswire.

 

Simmons and Streit said Green Dot Corporation has agreed to purchase UniRush, LLC, the parent company of the RushCard prepaid debit card.

 

The deal is worth about $167 million and will merge Green Dot’s 4.5 million cardholders with RushCard’s 750,000 account holders.

 

Simmons, long a champion for the underbanked and unbanked, will remain with the company and continue to play a significant role in guiding the union in its mission to create more banking opportunities for all Americans.

 

“There are some things that we can do with our card that will be happening soon that will make us unique,” Simmons said. “I don’t care how many cards you have in your wallet, you will need us with all of the tools and resources we’ll have. Every American needs a RushCard.”

 

Among those resources are the formation of the nation’s largest mobile, online and direct mail “direct-to-consumer” providers of bank accounts, debit cards and other financial services.

 

Of course, Green Dot’s acquisition of the RushCard enhances the company’s prospects among the tech-savvy, urban and millennial consumer segments of the financial services market where RushCard has traditionally excelled.

 

“The reason Steve was so attractive, as a partner, is that he does care and he has the innovative products that go with caring,” Simmons said. “We have early direct deposit, where people get their pay two days early, fraud protection and features that my customers need.”

 

Viewed by many as both a pioneer in the financial services industry and as a passionate advocate for the unbanked and underserved communities, Streit said his mission continues to be to financially educate low-income families and to serve their needs.

 

“If I had my way, young people, especially from low-income families, would always talk about money and learn how to manage money,” Streit said.

 

The deal is one Simmons called “a no-brainer” and one that will greatly benefit his already large customer base.

 

“We made a move to make sure that we better service our customers and that’s why we did this deal,” Simmons said. “We were set up to do a partnership and we will execute.”

 

The two CEOs said while they’ve long been competitors, they’ve also been admirers.

 

When Simmons didn’t shy away from a storm of bad publicity and personal criticism for a glitch in the RushCard two years ago, Streit said he was impressed with how the Def Jam founder responded.

 

Simmons helped to create a multi-million-dollar fund to help cover the costs that customers had while their cards were beset by technical problems.

 

In some instances, Simmons sent money to customers to help pay their rent, car loans and other payments.

 

“A big part of [buying RushCard] is Russell himself,” Streit said, noting that he met Simmons some time ago when Simmons gave a keynote speech at a conference about prepaid cards. “Russell understands the community and cares deeply. I thought he handled himself so well [during the glitch]. Everyone can be a great CEO or a great leader when things are going well.”

 

Streit continued: “Russell worked hard when things were going bad. The fact is that he quickly turned the health of that company around and he regained the confidence of his customers.”

 

Green Dot also encountered problems of its own last year when a glitch stopped many of its customers from accessing their accounts, making purchases and withdrawing cash.

 

With Streit’s guidance, the company was also able to overcome those issues.

 

Together, Green Dot and RushCard are two of the oldest prepaid debit cards in the marketplace. Simmons’ RushCard popularized prepaid cards, while Green Dot pioneered the reloadable prepaid card and is the largest provider in the U.S., according to Forbes Magazine.

 

Recognized with numerous industry awards including a two-time winner of Ernst & Young Entrepreneur of the Year, Streit has heavily been involved in philanthropic efforts, founding Patti’s Way, a 501(c)(3) charitable foundation providing grants to single mothers and their children.

 

Streit also has mentored children in foster care in Los Angeles and has been a benefactor to the Los Angeles Police Department’s Hollenbeck Police Athletic League.

 

“Russell and I are both philanthropic and, yes, it’s always a danger when you align yourself with any human because you’re always worried about someone getting into trouble,” Streit said. “But, Russell has so many years of being an activist and, as far as his activism goes, I love it. Look, money is power, money is politics and money has its means and Russell gets it.”

 

Streit said Simmons’ voice and creative spirit and love for the community at-large were important factors in doing a deal of this magnitude.

 

“I don’t like when big companies buy companies and homogenize it. I wanted to make sure we kept the flavor and kept Russell’s energy, love and passion,” Streit said.

 

In the end, the pair each said the deal was easy.

 

“Year ago, the RushCard supported a financial service tour that we did we Dr. Ben Chavis,” Simmons said. “We taught financial literacy and a part of our mission, as this company grows, is to teach financial literacy.”

 

Simmons continued: “The potential to help the community grows with this deal. We speak their language and we speak to their needs.”

 

The deal, expected to close before the end of the first quarter, enhances Green Dot’s shareholder value and materially expands the company’s scale, Streit said.

 

As he’s done with ventures in music, comedy and fashion, Simmons said he’s partnering with the best company in the industry, Green Dot, to expand opportunities and continue RushCard’s mission to revolutionize the banking industry.

 

“We believe our customers are among the most loyal in prepaid and I want to thank them for their years of support. I always wanted to serve the customer and I sold into a place where I’ve known Steve for a long time and I trust him and he’s been a great competitor,” Simmons said. “We are excited to continue and expand upon our tradition of providing great and important products for our customers over the many years to come and the truth is millennials are looking at us as the future of the banking industry.”

 

Dr. Benjamin F. Chavis, Jr., the president and CEO of the National Newspaper Publishers Association said that Russell Simmons continues to advance the economic development interests of the African American community, as well as all marginalized communities across the United States.

 

“The NNPA, in particular, recognizes this acquisition with serious anticipation toward helping to further fulfill the inclusive goal of economic justice and equality for all,” Chavis said.

Category: Business

January 26, 2017 

LAWT News Service 

The City of Compton has hired the Assistant City Manager of the City of Carson Cecil Rhambo to be their next City Manager. Rhambo will replace interim City Manager Jerry Groomes who was once the long time City Manager of Carson.

 

Rhambo was hired in 2014 as Carson’s Assistant City Manager after retiring from a 31 year career with the Los Angeles County Sheriff’s Department and 38 years overall from the County of Los Angeles.  Rhambo rose to the rank of Assistant Sheriff and, at one time, had overall command of approximately half of the 18,000 employees within the Depart­ment. He was responsible for Jail op­erations, the Gang Bureau, the Special Weapons Team, Homeland Security, the Los Angeles Community Col­leges, and the massive Metro bus and rail lines.  In early 2001, Rhambo commanded patrol personnel at the Compton Station and led a very successful reduction in crime and won over the trust and praise of the community through the implementation of a number of community policing practices.

 

As the Assistant City Manager in the City of Carson, Rhambo administered much of the day to day operation of the city and had direct reports in Public Safety, Parks, Recreation and Human Services, Human Resources, Transportation, Code and Parking Enforcement, Information Tech­nology, and Emergency Services. 

 

Rhambo’s top priorities are taking aggressive steps to get a balanced budget to the City Council on time, assess and prioritize the City’s crumbling infrastructure, assess personnel and equipment needs, and make policy and procedure recommendations to the Mayor and Council to ensure more accountability. 

 

“I’m excited!” exclaimed Rhambo.  “My parents moved to Compton in 1950, it was my first home.  As the first full time commanding officer from the Sheriff’s Department to police the city after the merger of the Compton Police Department, I developed a passion for the city.  I patrolled the streets, met with the residents, held grieving mothers and celebrated graduations.  This is a wonderful community that just needs team work and a commitment from all of the team members.  I think this is a great council with passionate leaders willing to do the tough job of literally transforming Compton.  I’m extremely humbled and honored to be part of their team.”

 

Rhambo holds a Bachelor’s degree in Sociology from Humboldt State University, a Master’s degree in Organizational Leadership from Woodbury University, and has completed approximately one half of his Master’s in Public Administration from Long Beach State University. He resides in the Southbay with his daughter Rachel, 20 and son Cecil III, 16.  He enjoys outdoor activities, jogging, swimming, and spending time with his kids.  

Category: Business

January 19, 2017 

By Stacy M. Brown 

NNPA Newswire Contributor 

Despite a plethora of economic and social challenges, African-Americans remain among the most optimistic consumer groups in the nation’s economy.

 

A recent report by the market research firm, Packaged Facts, revealed that nearly half (47 percent) of African-Americans believe they will be better off financially 12 months from now.

 

The report, titled, “African-Americans: Demographic and Consumer Spending Trends, 10th Edition,” found that just 37 percent of ‘other Americans’ are as optimistic.

 

Also, revealed in the report, affluent Black Americans hold especially strong convictions about how their financial future will unfold, although the abiding optimism of African-Americans transcends income levels.

 

“For African-Americans, optimism is not tied to their affluence or wealth, but to their faith,” said Princess Jenkins, an entrepreneur and founder of the nonprofit “Women in the Black,” an organization that assists female entrepreneurs. Jenkins also owns the Brownstone Lifestyle Boutique in New York. “We have survived yet another inescapable era and come out on the other side of it better, brighter, informed and with affordable health coverage for our families.”

 

Jenkins continued: “I have benefited from the consumer optimism shared by those in the Packaged Facts report because, in the aftermath of the presidential election, Blacks feel that the economic growth engines put in place under the eight years of President Barack Obama have started to pay off.”

 

Jenkins said that Black people have rode the economic downturn, the fall of Wall Street, the threatened closure of the auto industry and the mortgage crisis and have finally emerged on the other side and the cloud has lifted.

 

The 2016 Nielsen Consumer Report showed that the spending power of African-Americans has exceeded $1 trillion.

 

The spending power is just one reason for the optimism, Packaged Facts noted.

 

The reasons for the steadfast confidence of African-American consumers are many and complex, the report’s authors said.

 

To begin, despite the growing chasm between the very rich and the rest of American society, there are strong empirical reasons for African-Americans to believe that upward mobility remains achievable for them.

 

Key social and economic indicators point to a significant increase in the number of middle- and higher-income African-Americans over the past decade.

 

During this period, the number of African-American households with an income of $100,000 or more jumped 83 percent, while the number of African-Americans employed in management and professional occupations grew from 3.8 million to 4.8 million, an increase of 26 percent.

 

There are now nearly two million Blacks who earn at least $75,000 annually.

 

The confidence of Black consumers may also stem from the “Obama effect,” a phenomenon that among other things sparked renewed optimism among African-Americans based on their pride in the election of the country’s first Black president.

 

A Packaged Facts analysis of trends in the consumer confidence index of Simmons National Consumer Study data has found a factual basis for this hypothesis.

 

 In 2007, Blacks were less likely than other Americans to be ranked as “highly confident” consumers (20 percent vs. 25 percent).

 

By 2009, the year after the election of President Obama, the positions of each segment had reversed, as 26 percent of Blacks and just 17 percent of other Americans were classified as “highly confident” consumers.

 

By 2013, following the re-election of President Obama, 42 percent of Black consumers were rated as “highly confident” compared to just 28 percent of other American consumers.

 

More recent trends suggest that the Obama effect may in fact have been in play in recent years, at least when it came to boosting the optimism of Black consumers.

 

The proportion of African-American consumers categorized as “highly confident” fell from 42 percent in 2014 to 38 percent in 2015 and 31 percent in 2016. Nevertheless, as the Obama administration nears its end, African-Americans remain more likely than other consumers to have a high degree of consumer confidence (31 percent vs. 27 percent).

 

“I work with African-American entrepreneurs each day who believe that they can create opportunity and generate profit. Words like hustle, ingenuity, faith, and luck almost always trump fear and pessimism,” said Lyneir Richardson, the director of the Center for Urban Entrepreneurship and Economic Development, a research and practitioner-oriented center at Rutgers Business School in Newark, New Jersey.

 

Still, it’s vital that African-Americans continue to keep their money flowing within the community, said Samson Adepoju, the founder and CEO of Salon Your Way in New York.

 

“African-Americans should invest part of their money back into local Black businesses and, if there isn’t one in a particular area, start one up,” Adepoju said.

 

“Financial education is crucial and a lot of our money can be invested in stocks and bonds. Rather than spending $350 on a pair of Air Jordan’s, why not buy Nike stock, which is about $50 per share? That way, you can actually own a piece of Nike,” he said.

 

Despite the optimism, some have expressed caution, because there’s still a large swath of the Black community that’s unemployed or underemployed.

 

“It’s a little troubling to see such strong optimism from the African-American community while our unemployment rate has grown to 14.1 percent,” said Steve Burton, who started his first E-Commerce business at 18, which allowed him to invest in music.

 

Burton, who started a business to license music for television shows and movies for FX, Disney, Lifetime and BET, owns PerfectTux.com.

 

“I believe that we are in a time where African-Americans are starting to realize the impact of their own buying power and the importance of spending wisely, building wealth, and starting businesses,” said Burton. “These factors would lead to optimism that transcends income levels, because when you know better, you do better.”

 

 

 

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Category: Business

January 12, 2017 

LAWT News Service 

Noted community activist and founder of Turning Point Magazine passed away surrounded by friends and family on Sunday, January 8.  Pat had been battling Brain Cancer for some time and had not been seen around the community for several months.

 

As founder and president of Turning Point, Means had established herself as a new-economy entrepreneur and small business specialist. Her aggressive “can-do” entrepreneurial spirit has carried the company from its inception with a $2,000.00 investment to a nationally recognized small business and community development resource.

 

Means co-founded the publication after the 1992 uprising in Los Angeles to address the lack of positive portrayals of African Americans in the media. Through Turning Point’s thirteen-year journey to become the only medium – print or broadcast – specifically targeting African Americans of influence in California, Ms. Means acquired full ownership of the publication in 1995. And in 2001, Turning Point Magazine expanded its message and services to a national audience.

 

Knowing first-hand the obstacles that African American business owners face, this business trail-blazer positioned Turning Point Communications as a viable vehicle to assist entrepreneurs keep abreast of the ever-changing business paradigm by creating entrepreneurial development events such as the very successful annual National African American Business Summit and the Access to Success Business Tour®. Through her efforts, many small business owners have realized their dreams of becoming productive and profitable parts of the American economy. By the same gesture, Ms. Means provided a direct diversity vehicle for corporate America to reach the multi billion-dollar black small business market.

 

Recognized as an advocate for minority small business, Means was appointed to the National Congres­sional Small Business Task Force by Representative Juanita Millender-McDonald.

 

Means served as Chairperson of the Los Angeles 10th District Small Business Commission (appointed by City Council Member Martin Lud­low). She established and serves as board president of the TPC Foun­dation, Inc. and sat on the boards of the West Angeles Community Develop­ment Corporation, the Los Angeles African American Women’s Political Institute, Inc. (LAAAWPPI), the Greater Los Angeles African Ameri­can Chamber of Commerce and the Wells Fargo Community Advisory Board.

 

Services for Means will be held on Thursday, January 19, 2017 at West Angeles Church of God In Christ – 3600 Crenshaw Blvd., Los Angeles and is tentatively schedule for 11am (however the time has not been confirmed)  Please check the Sentinel website www.lasentinel.net or our social media platforms for updated information.

Category: Business

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